Price index

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Price index

devide

price indexes

a time series of

easier

to

deal with

each price level

by

given constant

example

prices rose

on average

2.68%

January to February

(624.00 - 607.70)/607.70

3.42%

January to March

price index

103.42

102.68

100

April 1, 2008

628.50

March 1, 2008

624.00

Feb 1, 2008

607.70

Jan 1, 2008

base

interested in

not

particular value

percentage change

price level